Franke James is Editor/Founder of Office-Politics.com and Inventor of the Office-Politics® Game.

Peter
R. Garber has worked as an HR professional
for over 25 years and is the author of many business books
including: Winning the Rat Race at Work and 100 Ways
to Get on the Wrong Side of your Boss.

Dina Beach
Lynch, is an Ombudsman, Author and former attorney. An award-winning
mediator, Dina served as the Corporate Ombudsman for the 7th largest bank
in the US helping over 48,000 employees to resolve workplace issues.

Dr. Rick Brandon is
CEO of Brandon Partners. He has consulted and trained tens of thousands at
corporations worldwide, including Fortune 500 companies across a variety
of industries.

Dr.
Marty Seldman is
one of America's most experienced executive coaches.
His 35-year career includes expertise in executive coaching,
group dynamics, cross-cultural studies, clinical psychology, and
training.

Arnie Herz, is
a lawyer, mediator, speaker, author and consultant nationally recognized
for his practical and inspired approach to conflict resolution and
client counseling.

If
you are asked to lunch by one of your employees,
and discuss work-related matters, who should pay for the lunch?

April
2005, Article 8

Dear
Office-Politics,

If
you are asked to lunch by one of your employees
and discuss work-related matters, who should pay for the lunch? This
is a question I need to answer for a school presentation. I have
looked over most of the information in your site and was unable to find
any information on this question.

Student
in Need

Dear Student
in Need,

I'm not sure whether you're truly a 'student in need' since this seems
like common sense and something you could figure out for yourself with
a smidgen of analytical thought and very little effort. But since I enjoy
voicing my opinion here goes...

If you ask me to lunch, it is conventional expectation that you would
pay. Unless you stated in advance that it's 'dutch treat'. If the question
of who is paying is left 'up in the air', that awkward moment will arrive
when the meal is finished and the restaurant check lands on the table.
One person pretends to reach for it... or excuses themselves to the restroom
to avoid paying for it. Being vague about who is paying is pretty silly
and not conducive to fostering good relationships. But we're in a gray
zone where it's mostly about manners, and friendliness as to who wants
to pay. There are no hard and fast rules. If we're good friends we could
decide to take turns treating each other to lunch. If you ask me to lunch
and then hand me the bill, I'd be annoyed -- but I'd pay the bill and
make a mental note not to accept your 'invitations' again.

In this case we are dealing with the interests of a company and the use of an
expense account. In your question, an employee asks Management (the Executive)
out to lunch. What is the underlying purpose of the lunch? Is it business? Is
it to personal, e.g. 'getting to know one another better' or asking for a favour
like 'my son wants a summer job' or is it covertly 'romantic' (!!)?

And very importantly: Is the Executive an employee or an owner of the
company?

Well, whether or not the Executive is an employee or an owner of
the company, they still need to be fiscally responsible in declaring business
expenses. At the end of the day they are answerable to the tax department, and
possibly to shareholders (even if they are a privately held company).

So your question really revolves around whether or not the purpose of the lunch
was primarily business or personal. The Executive needs to decide if
the lunch is a reasonable and legitimate business expense that: i) the company
can afford, and ii) that he/she has the authority to decide on.

If the tax department was peering over their shoulders would they agree that
it was a business expense? Just because work-related matters were discussed
doesn't necessarily mean that the Executive is obligated to pick up the tab.
Imagine that I'm the owner of the company and you ask me to lunch. I quickly
discover, to my surprise, that the purpose of your invitation is to ask me for
a favour (e.g. a summer job for your son). But then you (as the employee) ambush
me into paying for lunch as a business expense. I'm left scratching my
head why I should pay when YOU asked me out, and expect ME to do you a favour!

Generally speaking the person who extends the invitation is seen to be responsible
for the payment of it. As a business owner myself, it all comes down to the purpose
of the lunch. And a gentle reminder that in life there are 'No free lunches'
and life is a 'two-way' street. There is always a trade going on. Even if it
is just goodwill. Like me writing this answer for your presentation.
Let me know what mark 'we' get... I always did well in school so I'll take some
pride in it.

Feedback from Student-in-NeedThe information was
extremely helpful. I found your
beginning statement,"let's use a little common sense" very humorous. I
thought it was a good intro, it made me laugh. Thank you so very
much for responding to my question.

Send your comments
about this article to: ceo AT officepolitics DOT comThe Ethics Letters that appears as a feature of
this Website is an educational and discussion oriented column designed
to help the reader better understand ethical issues. The matters discussed
in the letter are reviewed in a summary/abbreviated way and are only meant
to foster thinking on the part of the reader. If a person decides to adopt
or implement suggestions, they do so at their own risk. No representation
or warranty is provided in relation to suggestions or the contents of
the letter. Neither the authors of the letter, Franke James, John W. Burton,
or the owners of this Website accept any liability whatsoever for any
opinions expressed in the letter or for errors and omissions. Submission
of letters to the Office-Politics Forum grants the Publisher, Nerdheaven
Ltd. the right to reproduce, republish, repurpose and excerpt the submission
in any and all other media, without compensation or contacting the author.
Copyright Nerdheaven Ltd. 2002-2005